Flipkart Will Look Into Multiple Geographies For IPO: CEO Kalyan Krishnamurthy

Ecommerce major Flipkart’s Group CEO Kalyan Krishnamurthy said the company would look at multiple geographies, including India, for its IPO.

In a conversation with brokerage firm Jefferies, Krishnamurthy said, “The listing will eventually happen. Regarding geography, we will look at multiple regions. There is no final decision on any of these aspects at this stage.”

Flipkart has been working on its IPO for the last few years and the development comes after it was earlier reported that the ecommerce decacorn was eyeing a listing on Wall Street.

The development also comes when Flipkart expanded its positive contribution margin to Walmart’s international business in Q4 2022. However, the ecommerce giant notched up a loss of INR 2,013.7 Cr and consolidated revenue of INR 1,692.7 Cr in FY22, even as Walmart continues to be positive about the ecommerce entity achieving profitability.

Last year, Walmart International CEO and president Judith McKenna said there was clear proof of value at Flipkart and the US-based retailer was positive that the ecommerce giant it acquired in 2018 would achieve profitability soon. 

At the same time, McKenna had said that Flipkart would go for a public listing ‘when the time is right’.

“And when the time is right will depend on a number of factors, not least the market, but also the business performance,” McKenna said, adding, “They’ve hit our deadlines… We wouldn’t have invested if we didn’t believe they could become profitable in the longer term, and we continue on track for that.”

Media reports have pegged Flipkart IPO at a sky-high valuation of $60-70 Bn, with plans to list on US bourses.

Speaking on competition from the likes of Reliance and Meesho, the group CEO said good competition helps the category and drives market expansion.

At the same time, he added that a company needs end-to-end capabilities to scale beyond a certain point across categories. “Flipkart’s philosophy has always been to put the customer at the centre of decisions, not the competitor, and this strategy has worked out very well. We made the right tech and supply chain investments that have helped ecommerce be a choice for customers,” Krishnamurthy added.

The Flipkart Group CEO also shared his views on quick commerce, stating that it was difficult to operate the business model profitably. He added that the viability of the business model itself was still a question. It is prudent to mention that Flipkart already has a grocery vertical, competing with the likes of Amazon and BigBasket.

“That (quick commerce) is the segment we want to work in and add value for the customers, as 99% of India is value-conscious. We think we can deliver value and selection along with speed while being operationally effective,” he added.